Wherever there's a McDonalds, within a mile, there's a Wendys or Burger King or Taco Bell with a 99 cent Value Menu where you can get something as good or better than a McDouble for a dollar. Until their competitors raise their prices 69%, McD's is going to lose customers for the only part of their menu that showed any sales growth. Or people might just wake up and realize how delicious their salads really are.

Competitors have already raised their prices...for example, a double cheeseburger on BK's value menu is $1.49. I'm pretty sure McDonalds is aware of both the competitive nature of their industry, and the prices of their competition.

It was my understanding most items on the $1.00 menu were loss leaders, assuming or hoping the customer would order a soda or fries to make up the deficit of the actual item being sold for $1.00. (Like a Mc Double)

If that is the case I can certainly see them changing it up a bit to add different items. From what the article said the additions haven't been released yet, so I would wait and see what they add before passing judgment.

I remember reading an article about the "battle of the value menus" between the major fast food restaurants. The author noted McDonald's mistake in naming their menu a "Dollar Menu". They couldn't adjust their prices to rising food costs. Instead, they had to change the product (Double Cheeseburger was replaced with the McDouble to save them a slice of cheese.)

Wendy's and Burger King, on the other hand, had a Value Menu and previously $0.99 items slowly rose in price ...$1.19...$1.29...$1.49...and now around $1.69

I think their sales will go down as a result. However, if the Dollar Menu items were really being sold at a loss (as has been suggested on this board), this may help their bottom line. I usually only buy items from the Dollar Menu. I know I'm not paying $1.69 for a McDouble.